The loss/or expense components of insured risk's premium may,
at the option of the underwriting carrier, be adjusted in accordance with the provisions
of schedule rating to reflect defined characteristics of the risk which, in the sole
judgment of the underwriting carrier, are not adequately reflected in prior experience of
the insured risk.

At the option of the underwriting carrier this plan may be
applied to any risk regardless of premium size.

All statistical reporting requirements of the
PCRB and the
Pennsylvania Insurance Department, including provisions of the Statistical Plan Manual,
Annual Calls for Financial Data Experience and Pennsylvania Schedule W, are applicable to
business written in accordance with this plan and must be complied with by carriers using
this plan.

Schedule rating credits or debits must be applied as a
percentage factor to premium computed after experience modification (if the insured is
eligible for experience rating) and before carrier premium discounts and expense constants
if applicable.

Schedule rating adjustments for any given risk shall be based
on information contained in the carrier's files and records when the credit or debit is
determined, and such supporting information must be retained in the carrier's files and
records for such risk throughout the period of time in which the policy is subject to
audit under provisions of the policy.

Acceptance of a policy by an insured shall constitute
agreement with the amount of schedule rating credit or debit, if applicable, or with the
absence of any such credit or debit, if not applicable. Upon request of the insured a
carrier shall make available documentation supporting the derivation of any proposed
schedule rating credit or debit.

Upon request of the Pennsylvania Insurance Department or the
PCRB a carrier shall make available documentation supporting the derivation of a
schedule rating credit or debit for any specified risk or risks.

No schedule rating credit or debit may be effective prior to
the underwriting insurer's receipt of information for a risk supporting the schedule
rating credit or debit in question. No schedule rating credit or debit may be changed
midterm without the mutual agreement of the insured risk and the underwriting carrier.

The following risk characteristics are eligible under this
plan for assignment of credits or debits subject to the maximum ranges set forth below:

RISK
CHARACTERISTIC

ALLOWABLE
RANGE OF CREDITSOR DEBITS

Features of workplace maintenance or
operation

-10% to +10%

Risk elements not addressed in the
Classification Plan

-10% to +10%

Availability of medical facilities in or
near workplace

-5% to +5%

Safety equipment/devices present
in/missing from workplace

-5% to +5%

Extraordinary safety programs applicable
to workplace

-5% to +5%

Qualifications of employees

-10% to +10%

Accommodations/cooperation with carrier by
management

-5% to +5%

Considerations related to policy expenses

-5% to +5%

Other risk characteristics not addressed
above (specified)

-10% to +10%

The maximum schedule rating credit
permissible for any risk under this plan is - 25%.The maximum schedule rating debit permissible for any risk under
this plan is + 25%.